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reporter2
13-09-12, 12:04
http://www.businesstimes.com.sg/premium/singapore/industrial-strata-units-60-year-leases-sale-20120913

Published September 13, 2012

Industrial strata units on 60-year leases up for sale

Prices start from $350psf with sizes of 1,600-2,700 sq ft

By Mindy Tan


A 60-YEAR leasehold strata-titled industrial development at 7 Gambas Avenue has been launched with prices starting from $350 per square feet (psf).

The B1 industrial development, Ark@Gambas, is a nine-storey light industrial building comprising a total of 293 part-ramp-up and part-flatted factory units, with full-glass frontage and floor-to-floor height of up to seven metres for the ground floor units.

The project, which is developed by HLS Development Pte Ltd, a subsidiary of mainboard-listed Hock Lian Seng Holdings, also provides car parking facilities at a three-lot-per-unit ratio and has a canteen on its premises.

Development is scheduled to be completed by end 2015.

The size of a typical column-free unit ranges from approximately 1,600 sq ft to 2,700 sq ft, with prices starting from $350 psf.

Said Colliers International's executive director of industrial services Tan Boon Leong: "Ark@Gambas is one of the last few Government Land Sales sites released with a 60-year lease term. With the government reducing the tenure of industrial sites to 30 years with effect from June 2012, we expect capital values in industrial developments with longer tenures to appreciate in the medium term."

There has been increasing interest in strata-titled developments from both end-users and investors since 2010, resulting in robust activity in the industrial strata sales market, said Mr Tan.

"We expect similar interest levels from both end-users and investors for this development - especially since this is the first B1 strata-titled industrial development to be launched in the Gambas area this year," he added.

Colliers International is the sole marketing agent for the development.

focus
13-09-12, 12:51
Looks interesting for a yield play.
If can get $2psf for a 1600sqft at $350psf , it translate to 6.8% gross yield.

But no experience in industrial.. Anyone else think this is doable?